TMI Blog1980 (1) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Appellate Assistant Commissioner's order. The assessee purchased scrap metal from hawkers and vendors. These purchases had not suffered tax at any earlier stage. The scrap so purchased was used in the manufacture of ingots. The purchases amounted to Rs. 29,493.38. The assessing authority subjected this turnover to tax under section 7-A of the Tamil Nadu General Sales Tax Act. The Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority has to be restored. After hearing the assessee's objections, the Board cancelled the order of the Appellate Assistant Commissioner to the extent that he deleted the assessment of the turnover for Rs. 29,493.38 and restored the assessment to that extent. This order of the Board has now given rise to the present appeal. Section 7-A, in so far as it is material for our case, runs as follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e short point for consideration is, whether the assessee after purchasing the goods had consumed them in the manufacture of other goods. The learned counsel for the assessee submitted that the scrap was melted and turned into ingots only for the purpose of removing the impurities contained in the scrap and that, in such a case, the ingots continued to remain the same as the scrap minus the impurit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ismail v. State of Kerala[1978] 42 S.T.C. 217. In that case, the question before the High Court was whether meat exposed for sale in the market after cutting or slaughtering goats or sheep cannot be said to have been manufactured after consuming the goat or sheep. The High Court held that there was no consumption resulting in the manufacture of other goods within the meaning of section 5A of the K ..... X X X X Extracts X X X X X X X X Extracts X X X X
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